Any thoughts on this - BAM

https://www.fool.com/investing/2022/06/16/why-i-just-bought-…

This kind of thing has interested folks on this board in the past…

Vince

1 Like

Vince–

I’m definitely interested in whatever BAM is doing, and I’ve found them to be a worthwhile follow from their (first?) spinoff in BIP. The more recent Trisura spin (now nearly 5 years ago) was a great setup and has performed very well for investors. So they’ve generally done well for investors and I’m looking at whatever they do. If those estimates are correct, per management, then it looks like there’s a free (or nearly free) company in there. I also like the spin of an asset-light business generally. So that kind of thing can be especially attractive, but I haven’t looked super closely at this one yet.

Jim

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Hi Vince!

I first bought BAM (and BIP) during the 2007-2009 crash, and it/they have done well for me. From a strictly mean reversion standpoint, BAM is in interesting territory, which makes it a candidate to examine the “why” of its drop, and see if I’ll add:

https://invest.kleinnet.com/bmw1/stats30/BAM.html

Cheers!
Murph
BL Home Fool

2 Likes

Thanks, Vince. Jason Hall’s article makes a good case for investing in BAM now.

David
No position, yet.

A writer at Seeking Alpha also makes the case for investing in BAM now:

https://seekingalpha.com/article/4512968-brookfield-asset-ma…

I may very well buy shares this week.

David

1 Like

I may very well buy shares this week.<<<

I too, had benefited from the BAM moves of the past many years and the articles were compelling so I traded some SAM for BAM in my portfolio.

I am nearing retirement and have largely completed the process of reducing the number of companies in my portfolio from over 500 to hopefully around 150 as a first step. In the beginnning of my Fool relationship, I bought virtually every recommendation, not trusting my instincts about companies. Over the past 20 years, I think I’ve leanrned some good things and over the last year, maybe some not so good. So I feel good making these decisions.

Most, if not all of Jim’s companies remain in my portfolio, especially the thrift conversions that hopefully will benefit in a higher interest rate environment. And TSFL, the stock I love to hate. BAM fits as it offers some nice upside without the uncertainty of the tech companies with huge losses and P/S ratios.

Not sure this strategy will win out, but I have taken copious notes about when/why I bought/sold and at what price. Shoiuld be an exciting ride that hopefully is also profitable.

Sorry for the dissertation,
Vince

1 Like

Hi Vince!

Thanks for your comments and thoughts.

I’m 70, retired, and still actively investing although mostly holding on to
my portfolio made up of dividend-paying companies entirely.

I, too, started in the late 1990s with the Motley Fool and transitioned to
the Motley Fool Income Investor and Inside Value recommendations when those
premium services were around (they’re gone now and have been for several years).

As a result, I have learned to be a long-term buy, hold and watch investor.

Not to brag, but my patience and willingness to weather draw downs such as those
that occurred during the dot-com bust bear market of 2000-2002, and, especially, the Great Recession bear market of 2008 to March 9, 2009, have been rewarding for me and my spouse. The dividends from our portfolio pay us a handsome six digit annual income that is more than enough to keep us in a very nice life style, with or without social security.

That said, growing such a portfolio has taken time and courage in the face of those draw downs, including the Covid bear market of 2020 and the current bear market. Many investors panic and flee which never lends itself to capital creation. Paper losses are an opportunity to grow one’s portfolio. The Motley Fool has tried to teach its subscribers that approach to investing. But it’s a hard protocol for many to follow.

(And I, too, have learned to love and hate my shares of TFSL.)

David

5 Likes

Does this mean they don’t like the assets they bought, if they want to separate from them?

I mean management of the asset management biz is getting paid on performance… this seems like a way to convert performance to fees, and then re-do management’s participation schema?

Does this mean they don’t like the assets they bought, if they want to separate from them?

Good question!

There isn’t anything in Jason Hall’s write-up or in the Seeking Alpha write-up suggesting that, but who knows? I get the impression after reading the BAM press release announcement that BAM is just trying to maximize shareholder value by the partial spin-off which will enable them to increase the dividend.

But, again, who knows?

David
No position yet.

https://seekingalpha.com/article/4519271-brookfield-other-al…

https://seekingalpha.com/article/4518207-brookfield-asset-ma…

(This action just reminds me of NSAM or Colony’s machinations.)

1 Like

(This action just reminds me of NSAM or Colony’s machinations.)

Yeah, I get that. The difference is that BAM’s management is nothing like those bozos that ran
NSAM and Colony. At least I don’t see any similarity.

David

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Look, I am not saying that they are like those guys, but the action of separating the management from the assets is, without-a-doubt, a self-interested act for the managers. And since they know the assets as well or better than anyone else…

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Got it, and I think you and I and others should be cognizant of the issues you raise before investing in BAM.

David
No position yet.

Those who would like some insights into BAM’s financial engineering/spin offs over time…and it has been going on for quite some time…may want to check out the commons BAM board. Some pretty smart guys opine there…pros and cons… including mungofitch:

https://discussion.fool.com/brookfield-asset-management-bam-1175…

(You’ll have to go back in time a bit, but some of the insights are well worth it.)

Cheers!
Murph
BL Home Fool

2 Likes

Those who would like some insights into BAM’s financial engineering/spin offs over time…and it has been going on for quite some time…may want to check out the commons BAM board. Some pretty smart guys opine there…pros and cons… including mungofitch:

Thanks, Murph!

Always good to hear from you!

David

Always good to hear from you!

Right back 'atcha, David!

Happy to see you back on the boards and doing well!

Cheers!
Murph